Indices
Dow + 123.03 at 10,716.13  -   Nasdaq + 29.02 at 2,086.66  -  S&P 500 + 13.14 at 1,203.03 

Market Wrap
(From Briefing):

Stocks were slow out of the gate, in the wake of lackluster employment data, mixed earnings reports and disappointing guidance, but gained substantial ground throughout the session as the major indices closed higher for the second straight week... The Dow, S&P and Nasdaq had their best showing so far this year, as strong mutual fund inflows helped keep a firmly bullish bias intact and virtually every sector in positive territory... January non-farm payrolls rose 146K, weaker than the 200K economists expected and below an average gain of 177K over the four prior months... But the data still showed a gain nonetheless that, coupled with 1 1/2-2.0% in productivity, reflected real GDP growth of 3.0-3 1/2%... That said, investors did not view the data as so disappointing that consumer spending would be threatened, as hiring is clearly taking place but just not as fast as many anticipated... The market also embraced lower bond yields prompted by aggressive buying interest in treasuries as the weak job figures mitigated inflationary pressure and lessened the chances of more aggressive Fed tightening... The benchmark 10-year note closed up 23 ticks to yield 4.07%... With regards to earnings and guidance, Time Warner (TWX 18.00 -0.16) and Ryder (R 45.05 -0.88) both beat Q4 forecasts, but TWX warned of sluggish FY05 growth while Ryder guided Q1 EPS below consensus estimates... However, investors appeared to reflect more on aggregate earnings/guidance for the week, most of which did come in better than expected, and became fixated on the market's resilience to the payrolls data... A U.S. appeals court ruling that blocked the government's bid to force cigarette makers to pay $280 bln also boosted overall sentiment... Technology was strong across the board as semiconductor soared 4.4%, following positive comments from Prudential and SG Cowen, while an upgrade in the disk drive space helped lift it nearly 4.0% higher... Hardware, software and homebuilding gained in excess of 2.0% while gains of more than 1.0% were witnessed in financial, airline, biotech, materials, utility and telecom services... Energy was also strong, despite relatively no change in crude oil prices ($46.48/bbl +$0.03), as were retail, health care and consumer staples... Health care distributors (-2.2%), however, was about the only group losing significant ground following missed Q1 expectations and reduced FY05 guidance from Cardinal Health (CAH 58.18 -1.91)... Separately, the revised Jan consumer sentiment unexpectedly weakened to 95.5 (consensus 96.0), from 95.8 earlier in the month and below the 97.1 level in Dec, but the index continued a modest trend higher and stands above the 92.1 average since 1990... The dollar hit its strongest levels against the euro (1.2871) in three months following Greenspan's supportive comments regarding the current account deficit, but remained weak against the yen (104.08)... Getting weaker at the expense of the greenback's strength were gold futures, which extended their sell off, closing down $2.60 at $415.90/ounce...NYSE Adv/Dec 2557/790...NASDAQ Adv/Dec 2103/1016.

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Today's Picks - February 07, 2005

1.   WLT - Walter

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 37.92

2.   TOL - Toll Brothers

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 82.35

3.   WLP - Wellpoint

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 124.90

4.   SGTL - Sigmatel

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 43.06

5.   UNH - Unitedhealth

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 91.80

6.   MAS - Masco

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 38.09

7.   DUK - Duke Energy

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 27.73

8.   DIS - Disney

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 29.36

9.   CTX - Centex

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
02-07		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 65.05

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EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
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